Bridging Finance

When opportunity knocks, speed is quite often of the essence. At Amram we have years of experience providing bridging loans to both individuals and companies, for a wide range of purposes. We work with lenders who

We cater for all scenarios, including, but not limited to

Not only that but as a company able to offer a full suite of financial services, we can also arrange your exit as well. Examples of exit strategies could be

Bridging Finance is often used as it is a fast and effective method of securing funds. This type of borrowing is often at a higher rate of interest and usually a shorter term typically between 6 – 18 months. When securing an asset that is time sensitive, a bridging loan can often help you get from point A to point B. Our expert bridging advisors are here to help you assess if bridging is the best move for you.

Frequently Asked Questions

WHY SHOULD I USE A BRIDGING LOAN?

A bridging loan should only be used when time is of the essence, or a more long term option for finance is unavailable. This could be because you have seen a property at auction and don’t want to miss out, or because you wish to buy a property that does not allow for a traditional mortgage. Once the bridge has served its purpose you will most likely want to either sell the property or move to long term finance, which we can arrange for you.

WHY ARE THE RATES HIGHER?

Rates are most commonly based around risk for the lender. The higher the risk the higher the rates. However there is a cost to the lender for setting up and managing a finance deal. A longer term deal such as a mortgage cost a similar amount to manage as a bridging loan, but the cost is spread over a longer period. Additionally the lender on a long term loan knows that they are guaranteed to receive interest payments for a long time whereas a bridging lender does not have that guarantee.

HOW LONG CAN I KEEP THE LOAN FOR?

Bridging loans are usually arranged for a period of between six months and 18 months, although in some circumstances it is possible to get a 24 month term. In truth, you want the period to be as short as possible before you move two longer term finance. It is therefore important to consider how long it will take you to reach that stage before committing to a bridging loan.

CAN I PAY IT BACK EARLY?

It is possible to pay a bridging loan back early. There is usually an early exit fee, which in a lot of cases amounts to the equivalent to one month’s interest.

HOW MUCH WILL IT COST ME?

Amram usually charge a fee of 1.5% of the loan value, which is built into the terms of your loan and will be discussed at the time we recommend a lender to you. There will be other fees associated, for example the fee for a survey as well as paying for the legal work on both your behalf and the lender’s behalf. It is therefore important to have at least £5000 available to cover these costs before you receive your loan money.